Bitcoin Bull Score Index Drops 50% to Two-Year Low

Bitcoin's bull score index has dropped to its lowest point in two years, signaling a potential shift in market momentum. The index, which measures various bullish indicators such as network activity, demand, and liquidity, has fallen to 20, a level last seen in January 2023. This decline has sparked concerns about a possible prolonged bearish trend, rather than a temporary correction.

The drop in the Bitcoin bull score index (BBSI) is attributed to weakened market momentum and bearish on-chain signals. Analysts have observed that key indicators, excluding stablecoin liquidity, have been bearish since mid-February. This trend has been particularly challenging for short-term holders (STHs), who have experienced significant losses in the past 30 days. However, these losses are within historical levels seen during previous Bitcoin bull runs.

Macroeconomic uncertainties and potential tariff wars in early April are also cited as significant factors that could further impact Bitcoin's price. Analysts warn that these uncertainties could exacerbate the risk-off sentiment for Bitcoin, making it crucial for market players to closely monitor these developments in the coming weeks.

The current market conditions, as indicated by the BBSI, suggest a cautious outlook for Bitcoin. The index's reading of 20 highlights the weak market momentum and raises concerns about a broader bearish trend. Investors and analysts are advised to keep a close eye on key on-chain signals and macroeconomic factors that could influence Bitcoin's price in the near future.